Hello Bob,
I try and plan for most contingencies ahead of time, so that when things change, I am already prepared. This also allows me to do less ‘thinking’ which could lead to over-analysis, and more using my mental energy and capital to focus on finding new trade opportunities.
Now, in terms of what do I do when the more unusual situations come up (pretty infrequently), I read the price action in real time using my models to detect any positioning changes. If I see them and they are against me, I’m out. If they are in my favor, I stay in. Very much as said before, I trade my plan and let it play out in most cases, and only in the really unique environments do I adjust. And that is based on the price action picture I am getting - which if it negates my trade idea, then I’m out. If its not, then I manage it according to my models.
I will not increase my stop by any means, but may increase my upside target. As to the stop, the only thing I would do is tighten it. My goal is to reduce and neutralize risk in every opportunity, so hopefully this gives you some ideas how to deal with these moments.
But where you said ‘But its that waddyado moment when you are all by yourself at that screen thinking why did I enter this trade that matters,’, I’m going to disagree with you here. I don’t think about why im in a trade after the fact. If i’m doing that, then I never accepted the risk from the outset, nor did I feel the trade was worthy to take. If I do this from the beginning, then it does me no good to waste my time thinking about why I’m in the trade. What I should be focusing my mental energy on is ‘how do I deal with the present moment and situation on the charts now’.
And I’m not going to say that is the moment that breaks/makes traders. I think traders are not made/broken in moments when things go wrong. I think traders are made by all the little things they do throughout the trading days, and non-trading days, that build the mindset, habits, and mental image that make/break a trader. All the things they do on an off the charts, particularly related to trading and performance, but also outside of that, that build the complete mindset of a particular trader.
And if the sum total of those things is favorable, then when those ‘waddyado’ moments are not make or break, they are just something to be dealt with, digested, and over-come. And the emotional/psychological moments that kick in, only do so because of the training, or lack thereof, that trader has done prior to that moment.
There certainly is a difference between traders, and the ones that over-come these moments you speak of, are not all hinged upon one moment, but a series of small moments and decisions, they have made prior to that event - particularly to do with how they have trained their mind/mindset.
So I cannot say I agree with these ideas entirely you state as I look at trading from a different perspective.
Hopefully this gives you some ideas how I relate to this.
Kind Regards,
Chris Capre
Broke even on last 2 week demo, but was over trading with only having 2 weeks
